Cambodia Further Cuts VAT Rate on Diesel Until Further Notice

Cambodia’s General Department of Taxation (GDT) recently published the Instruction on VAT Exemption as State Burden on the supply of Diesel and LPG Products. The instruction explains that the government has decided to further reduce the VAT rate on the import and supply of diesel to 0%, effective from 1 April 2026, with the state assuming the full rate (10%). The same applies for liquefied petroleum gas (LPG). The government previously provided for a reduction in the rate for diesel to 4%, effective from 20 March 2026, with the state assuming the difference (6%). This earlier reduction also applies for gasoline, which is maintained and not covered by the latest instruction. As with the prior reduction, the latest reduction applies until further notice.

Source Orbitax

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Cambodia Shifts 10% VAT Liability on Diesel and LPG to State Effective April 2026

• Cambodia’s government will assume the full 10% VAT liability on diesel fuel and LPG gas supplies starting 1 April 2026 to ease price pressures.
• Enterprises must issue invoices stating “VAT at 10% assumed by the state” and not charge VAT to customers.
• Input VAT paid on imports or domestic purchases of diesel and LPG can be credited against actual VAT liabilities if proper documentation is provided.
• The measure applies until further notice and does not affect the VAT treatment of regular gasoline.
• The General Department of Taxation and relevant enterprises must strictly implement these instructions.

Source: regfollower.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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